Pursuing higher education is a significant investment that requires careful financial planning. With the rising cost of tuition, accommodation, and living expenses, securing an education loan has become a necessity for many aspiring students. In this blog, we’ll look into a comparative analysis of two prominent players in the education loan market, HDFC Credila vs Leap Finance, to help you make an informed decision about which lender may best suit your needs.
Key Difference Between HDFC Credila Vs. Leap Finance Abroad Education Loan
HDFC Credila, is India’s first dedicated education loan company. With over seven years of expertise, Credila focuses on transforming lives and supporting education dreams. They offer custom-tailored loans, delivered to your doorstep, and even pre-approve loans before university applications, ensuring hassle-free financing for global studies.
On the other hand, Leap Finance is a relatively new Indian financial services company, founded in 2019. They intend to provide high-potential students with affordable student loans at reduced interest rates, a hassle-free service, and a simple process. Leap Finance caters specifically to Indian students aspiring to pursue higher education in the USA or Canada, to assist future leaders in pursuing global careers through modern financial products and services. Let’s compare the two NBFC education loans key features to understand which bank is best: HDFC Credila or Leap Finance.
| Key features | HDFC Credila Education Loan | Leap Finance Education Loan |
| Loan amount | 1.5 Cr | 100% |
| Rate of Interest | 10-13.5% | 11% onwards |
| Repayment Tenure | 15 years | 10 years |
| Moratorium Period | Course duration + 12 months | Course duration + 6 to 12 months |
| Collateral Option | Residential Flat, Residential House, Non-Agricultural Land, A Fixed Deposit, assigned in favour of Credila | No collateral required |
| Processing Fees | 1-1.25% | 1.5-2% |
| Co-borrower option | Parent/Spouse | Parents |
| Tax benefits | Section 80E | NA |
| Courses covered | Higher education in India, USA, and abroad | Higher education in |
As evident from the table, both NBFCs have different interest rates on education loans, moratoriums and repayment periods, collateral options, etc.
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HDFC Credila Vs Leap Finance Education Loan Eligibility Criteria
Understanding the qualifying conditions that lenders check when judging loan applications is very important. Typically, they look at things like your academic record, your family’s financial situation, and your potential to earn good money after your studies.
By knowing the eligibility criteria of each lender, you can judge if you fit their requirements and figure out which one is most likely to give you financial support for your dreams of studying overseas. Given below is the comparison between the eligibility criteria of HDFC Credila and Leap Finance. Go through well to scrutinise your loan options:
| HDFC Credila | Leap Finance |
| The borrower must be an Indian citizen. | Indian nationality |
| Co-applicants must be Indian citizens. | Minimum age of 18 |
| It is required that the co-borrower(s) have a bank account with cheque-writing privileges in any bank in India. | Potential requirement of an Indian co-signer to share loan repayment |
| HDFC Credila will apply its credit and underwriting policies to the borrower and co-applicant(s) as necessary. | University admission or applying for a Master’s degree or higher at an eligible institution |
Leap Finance & HDFC Credila Education Loan Application Process Through UniCreds
Finding it difficult to choose between an HDFC Credila and Leap Finance education loan? UniCreds offers personalised guidance to help you identify the most suitable loan option for your specific needs. Follow these straightforward steps to apply through UniCreds:
- Step 1: Visit our website and complete the inquiry form with your details.
- Step 2: Our experts will reach out to you to gain an in-depth understanding of your unique requirements and priorities.
- Step 3: Submit the requested documents as advised to enable a thorough evaluation of your eligibility.
- Step 4: After the assessment, we will recommend the optimal education loan scheme, either from HDFC Credila or Leap Finance.
- Step 5: Once you select the loan, we will forward your application for processing.
- Step 6: Our counsellors will continuously follow up with the bank to facilitate a quicker loan approval and disbursement process.
UniCreds provides this assistance free of charge, without any hidden costs. We make efforts to negotiate loans with lower processing fees for your benefit.
Documents Required For Leap Finance & HDFC Credila Education Loan
By carefully collating and presenting the required documents, applicants can increase their chances of obtaining favourable education loan terms from lenders. The following table outlines the primary documents typically required for education loans from HDFC Credila and Leap Finance Education Loans, along with their descriptions, to help borrowers prepare a comprehensive and compelling loan application package.
| Document Name | Description |
| Academic Records | Transcripts, mark sheets, and degree certificates from previous educational institutions, attesting to academic merit and performance. |
| Admission Letter | Offer a letter or admission confirmation from the university or college where the applicant has secured admission. |
| Proof of Identity | Government-issued identity documents like Aadhaar Card, PAN Card, Voter ID, Passport, etc. |
| Age Proof | Birth certificate or other documents to prove the applicant’s age and eligibility. |
| Address Proof | Utility bills, rental agreements, or other documents to verify the applicant’s residential address. |
| Income Documents | Income tax returns, salary slips, bank statements, or other documents to demonstrate the financial ability to repay the loan. |
| Co-applicant or Guarantor Details | Identity, income, and address proof documents for the co-applicant or guarantor, if applicable. |
| Fee Structure | Details of the tuition fees, accommodation costs, and other expenses to determine the required loan amount. |
| Course Details | Information about the course of study, duration, and the university or college where the applicant has secured admission. |
| Passport | A valid passport to verify the applicant’s identity and support the application for studying abroad, if applicable. |
| Visa | Visa approval documents for the destination country, if applicable. |
| Loan Repayment Plan | A proposed repayment plan outlining the expected income and expenses after course completion. |
HDFC Credila and Leap Finance Education Loan Repayment
- Leap Finance facilitates a direct transfer of funds to the university or higher education institution, covering all associated expenses. To build a favourable credit history in India and the destination country, partial monthly interest payments are required during the course duration.
- You have to repay education loans through Equated Monthly Installments (EMIs) commences six months after the completion of the course program. With HDFC Credila, interest repayment begins immediately upon disbursement of the first loan instalment. The overall loan tenure comprises the duration of the study programme, followed by a period of moratorium after completion, and then the repayment period.
- HDFC Credila offers a maximum tenure of 15 years for education loans. However, the actual loan tenure is subject to factors such as the borrower’s repayment capacity, prospects of the chosen course, the age of the co-applicant, and HDFC Credila’s prevailing credit and underwriting norms.
HDFC Credila Or Leap Finance – Which Is Better?
Both HDFC Credila and Leap Finance are reputable education loan providers that offer competitive features. The choice between the two depends on your requirements and priorities. Here’s an objective analysis:
- Loan Amount: HDFC Credila offers a higher maximum loan amount of ₹1.5 crores, while Leap Finance covers up to 100% of the education expenses. If you require a larger loan, HDFC Credila may be more suitable.
- Interest Rates: The interest rates are comparable, with HDFC Credila offering a slightly lower range of 10-13.5%, while Leap Finance starts at 11% onwards. The actual rate will depend on your credit profile and other factors.
- Repayment Tenure: HDFC Credila offers a longer maximum repayment period of 15 years, while Leap Finance caps it at 10 years. This may be a consideration if you prefer a longer repayment period to manage your EMIs.
- Moratorium Period: Both lenders provide a moratorium period (course duration plus additional months) before full repayment begins. Leap Finance’s range is slightly shorter (6-12 months) compared to HDFC Credila’s fixed 12 months.
- Collateral: HDFC Credila requires collateral like a residential property or fixed deposit, while Leap Finance does not require any collateral. If you don’t have collateral to offer, Leap Finance may be a better choice.
- Processing Fees: HDFC Credila’s processing fees are slightly lower at 1-1.25%, compared to Leap Finance’s 1.5-2%. This could translate into modest cost savings with HDFC Credila.
- Co-borrower: Both lenders allow parents as co-borrowers, but HDFC Credila also permits spouses, providing more flexibility.
- Tax Benefits: HDFC Credila offers tax benefits under Section 80E, which Leap Finance does not. This could be a factor if you’re looking to optimise tax savings.
- Courses Covered: Both lenders finance higher education in India and abroad, but Leap Finance seems to have a specific focus on studies in the USA and Canada.
Both HDFC Credila and Leap Finance are excellent options, and the choice depends on your specific needs and preferences. Consider factors like loan amount, interest rate, repayment tenure, collateral requirements, and tax benefits to determine which lender aligns better with your situation.
Both HDFC Credila and Leap Finance are NBFCs. The only difference between education loans offered by NBFCs and banks is that banks are associated with RBI Guidelines, and NBFCs are private entities specialised in personal/education loans, insurance, etc. UniCreds has partnered with several top NBFCs as well as banks to offer you the best education loan solutions.
FAQs
1. Which bank is better: HDFC Credila or Leap Finance?
HDFC Credila offers ₹1.5 crore max loan, 10-13.5% interest, 15-year tenure. Leap Finance covers 100% expenses, 11%+ interest, 10-year tenure. You can choose based on your requirements.
2. Which bank offers better interest rates for education loans between the two?
HDFC Credila offers slightly better interest rates ranging from 10 to 13.5% compared to Leap Finance’s rates starting at 11% onwards.
3. Can you compare the processing fees for both the NBFCs?
HDFC Credila charges 1-1.25% processing fees, while Leap Finance charges 1.5-2% processing fees for education loans.
4. What is the maximum loan amount offered by HDFC Credila and leap finances for education purposes?
HDFC Credila offers a maximum loan amount of ₹1.5 crores, while Leap Finance covers up to 100% of education expenses.
5. Are there any specific eligibility criteria that differ between the two banks for education loans?
HDFC Credila and Leap Finance both prefer Indian applicants, co-borrowers, and university admissions.
6. How do the repayment terms vary between HDFC Credila Vs. Leap Finance education loans?
Leap Finance requires partial monthly interest payments during the course, building credit history, with EMIs starting six months after course completion. HDFC Credila starts interest repayment immediately, offering up to 15 years of tenure.
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